Why Bid-Bots are pumping Steemit's economy
Bidding bots are a gaining more and more dominance as a normal practice on Steemit. Beyond the discrepancy among steemian's opinion on bots within the platform, this is a system that has brought positive outcomes for the native crypto economy, specifically can be a reason to pump the price of STEEM and stimulate the platform's liquidity growth.
The bidding bots might have changed the game about how curation works, the power to decide on content value is getting away from the hands of the community and now delivered to commercial marketing. This has raised ethical questions and purists criticism on the intended mission of the platform. I think it is ok to debate these kind of things, everyone has right to have an opinion about it, and we all want the best success of Steemit and subsequently our own, but in hope to shine some light into the subject, I think there are many financial benefits that are worth to mention.
The bot system has stimulated the usage and spending of liquidity (SBD) within the platform, the flow of capital is remaining for longer periods on the native economy, as well as pumping by default the increase of Steem Power in users. The logic of using these bidding bots is to bet SBD to get quicker and bigger rewards in Steem Power, thus strengthening Steemit's economy with more STEEM vested on the platform. It is like making every steemian to put more money in the savings account and subsequently making the voting reward pool bigger, increasing the earnings of the entire platform. Betting on having more Steem Power is always the best policy for the future of Steemit and the community. If the STEEM economy grows this will affect prices of the token beyond Bitcoin's performance and total crypto market speculations.
What do you think about bidding bots in Steemit? Please share your opinion in the comment section.
Thank you for reading.
Cheers!
I agree, the cycle of Bots -> Profit -> more SP
This is an interesting topic in my opinion. I have only really been on Steem for under two months and I don't know a ton about bots but I have mixed feelings from the little I have learned so far...
I don't necessarily agree that a post that doesn't have great content and isn't interesting can be on the "hot" or "trending" page. I think the community should decide what makes those pages by organic upvotes...
I think if that were the case, more people would come running to Steemit because they would know that all the best content was voted on by the Steem community and the whole site would be more transparent.
Personally, I don't think I will ever use bots but I like the point you made about the price of Steem... It is an interesting topic for sure!
Thanks for sharing @annemariemay I just want to add that in any case isnt really "the entire community" that curates content, actually is just people holding big amounts of STEEM Power who has the power to decide, curation power comes from the ones with major capital power on the platform. If you think about it, with bots anyone can aspire to have a powerful vote because the gains are focused on SP, so it might create an easier way to democratize the curation instead of leaving to the people that actually invested in STEEM and holds on it.
Oh! Interesting! Thanks for adding that! :)
I believe the bid-bots are a valid marketing strategy and they also give value to steem as whales need to vest Steem in order to sell their influence.
Overall is a win-win
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Being new to Steem, there is a lot to learn.
Bots I feel confuse the process. Bots seem like an other thing to do while on here besides just posting quality content.
I wonder what the affect of bot will be on the quality of the content. If people just post simple, easy and quick post and use bots to boost them, will STEEM become a waist of time? Will it become a way to mine crypto without truly contributing to the community?
However, if the community is not active enough to make posting worth while, then people will leave and stop posting.
Where is the balance between actively engaged community members responding to posts and using bots to get the posts noticed?
I actually wrote a post about this earlier today...
https://steemit.com/steemit/@rulesforrebels/if-steemit-no-longer-allowed-bots-would-the-price-of-steem-and-sbd-tank
Just to kind of summarize here's my thoughts. The bots have become a big part of Steemit and what it is.
I feel like voting bots have ruined quality content on the trending and hot pages. I also feel like this platform has become more about gaming the system than creating quality content and or being part of a community.
I do however think if bots were banned tomorrow I think Steemit would suffer, all the whales as well as voting bots would pull their money out of the system, as supply and demand works that would cause the price to tank. When prices tank people don't spend as much time on here and people put less time into creating quality content. In the short term I think it would hurt Steemit, if it survived which I think it would I think it would be good for Steemit in the longterm.
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